


%% BASE PARAMETERS
Params.TargetUrate = 0.097 ;
Params.P2   = ( ParamsH.omega  + ParamsH.eps  * ( 1 + ParamsH.eta  ) ) / ParamsH.P1 ;

Params.muLearn = Params.mu ;
Params.DeltaLearn = Params.Delta ; 
Params.D = Params.mu + Params.Delta ;
Params.DLearn = Params.muLearn + Params.DeltaLearn ;

Params.phi = 0.01 ; % Quarterly

if options.Hosios == 1
    Params.beta = Params.alpha ;
end

% Distributions
Grids.DensityCutoff = 0.001 ; % For pdf truncation to avoid numerical issues
Params.m0 = 1 ;
Params.massloc = 1 ;             % Exogenous supply of locations

% zeta distribution: beta distribution
Params.locL    = exp( - sqrt( 2 * log( 1 / Grids.DensityCutoff ) ) * Params.stdlL ) ; % lower bound of support
Params.locU    = exp(   sqrt( 2 * log( 1 / Grids.DensityCutoff ) ) * Params.stdlL ) ; % upper bound of support

Params.ameL    = exp( - sqrt( 2 * log( 1 / Grids.DensityCutoff ) ) * Params.stdlA ) ; % lower bound of support
Params.ameU    = exp(   sqrt( 2 * log( 1 / Grids.DensityCutoff ) ) * Params.stdlA ) ; % upper bound of support

% Starting values
Params.ineff = 1 ;
run BargainingPower.m
Params.ce    = 1e-7 ;

% Define composite index parameters
run CompositeIndex.m


%% CONSTRUCT GRIDS
run NumericalParameters.m


%% FUNCTION DEFINITIONS

% Truncate density
run Define_fzeta.m

% Define useful functions
run MiscFunctions.m


